All Savings offset in Barclays - how safe?

busy_b

You assume wrong, the mortgage is for 36k and my savings equal 36k, therefore, I owe them nothing if they go bust because they take my savings to pay off my mortgage !

I have chose not to "actually" pay my mortgage off, just in case I need access to the savings account at any point.

I don;t know what you're talking about with regards to anyone bailing me out, or reclaiming from a guarantee fund, I merely want to know how safe my savings are when they're being offset !

ormus

the gov/BOE will never let barclays go bust. never.
the risk of you loosing your money is about the same, as your chances of winning the lottery twice. in a fortnight.

LandyAndy

busy_b wrote: »

You assume wrong, the mortgage is for 36k and my savings equal 36k, therefore, I owe them nothing if they go bust because they take my savings to pay off my mortgage !

I have chose not to "actually" pay my mortgage off, just in case I need access to the savings account at any point.

I don;t know what you're talking about with regards to anyone bailing me out, or reclaiming from a guarantee fund, I merely want to know how safe my savings are when they're being offset !

How much easier this would have been if you had said that in the first place.:rolleyes:

busy_b

Apologies but I thought I had in my very first post !

I stated that I had offset all my savings against my mortgage 36K and then went onto say that it was only £1000 over the government guaranteed amount.

For some reason someone presumed I had a 150k mortgage!

I basically need to know if the savings of 36k are still guaranteed even though they are offsetting my mortgage. I don't know how I could simplifiy it further but sorry for any confusion!

adr0ck

busy b

are your savings with barclays

or is your mortgage with barclays

or are they both with barclays

busy_b

I have recently completed a remortgage to Barclays as they offer a complete offsetting service whereby my Mortgage of 36k is placed on an interest only basis.
I then place my 36k Savings with Barclays and this completely offsets the interest on my mortgage.

My first payment only goes out in a months time and therefore I am in the process of transferring my funds to the relevant offsetting account with Barclays. (I only pay one months interest and then make no payments for the lifetime of the mortgage as my savings totally offset).

I'm probably over complicating things but basically, I pay no interest on my mortgage (with Barclays) and receive no interest on my savings (with Barclays). It just offset's until I decide I want to pay it all off. (ie: when I have the nerve to do it and I'm completely sure that I don't need to access the 36k in emergencies, etc)

adr0ck

busy b

as previously stated you have nothing to worry about with Barclays....they are too big

they make too much money from mugabee to go bust

silvercar

busy b, I completely understood your offset from your first post. Maybe because I also have an offset so understand how they work.

You have actually made me quite concerned. Although not totally offset (ie my savings are less than the total mortgage amount borrowed by a long way), my offset savings are considerably more than the FSCS compensation scheme. I presumed, from the FSCS website info that I quoted in one of your threads, that the FSCS would look at the net amount outstanding. So in your case zero, in my case a large mortgage, would be the balance remaining should the lender go bust.

I would be very interested if you get a statement from the FSCS. At least you are with a big bank, I am with a building society.

busy_b

Now I'm concerned if you're concerned Silvercar because you all seem to know much more than little old me about these money matters but I will keep you posted with any info I receive.

Generali

My understanding is that with an offset mortgage, the debt and savings are counted as separate things for the purposes of the FSCS.

If Barclays go bust (which they won't) then you'll have a debt of 36k and have to claim your savings back from the FSCS.

I looked into this a while ago and I'm sure that was the conclusion I came to. Not 100% but close to.